From Portland Business Brokers Group.
Show how the business earns a repeat visit
For a service operation, a buyer will ask whether customers return for the team, the location or your personal involvement. Document what keeps those relationships with the company.
Separate repeat jobs from contracts with a stated term. Both can have value, but they should not be described as the same kind of committed revenue.
Review the work you still carry
List the weekly decisions that reach your desk. Estimating, scheduling and resolving complaints may need a replacement after the sale.
- Name the roles that can operate independently.
- Explain how new customers are won and retained.
- Separate ordinary expenses from unusual one time costs.
- Document obligations for vehicles, equipment and premises.
Compare proceeds with ongoing responsibility
An offer that pays later may leave you with collection risk. An offer that requires extended training may affect your retirement or next venture.
Discuss those boundaries before signing a letter of intent. The best fit depends on more than the largest number on the first page.